UK Start-up Visa

What was the UK Start-up Visa?

The Start-up Visa was launched in March 2019 to support early-stage entrepreneurs from overseas establishing innovative businesses in the UK for the first time.

Applicants were required to have no existing business in the UK; if they did, the company must not have started trading. The business had to be an innovative, viable, and scalable idea approved by an endorsing body.

The UK Start-up Visa was a one-time visa valid for two years. It did not require a degree or initial funding. It did not require you to be a sole founder. Therefore, you could apply as part of a team of entrepreneurs. If you were applying as a team, each applicant still required an endorsement from an approved endorsing body.

Visa Pathway

The Start-up Visa did not directly lead to UK settlement. However, visa holders could extend their stay by switching to the Innovator Visa, which led to Indefinite Leave to Remain (ILR) after three years. After obtaining ILR, they could typically apply for British citizenship.

Dependents

Start-up Visa applicants could bring their partner and children under 18 to the UK.

Eligibility Criteria

There were several requirements for obtaining a Start-up Visa, which varied based on personal and business circumstances. The key criteria included:

• Applicants had to be at least 18 years old.
• Meeting the English language requirement was mandatory.
• Sufficient personal savings were required to support living expenses in the UK. Specifically, at least £1,270, plus £630 for each dependent, had to be maintained in a bank account for 90 consecutive days before applying.
• There must have been no breaches of UK immigration laws, except for any permitted period of overstaying under the Immigration Rules.
• Previous business establishments in the UK were not allowed.
• The proposed business needed to be innovative, viable, and scalable.
• An authorised endorsing body had to assess and approve the business or business idea.

Endorsement Criteria for the UK Start-up Visa

To secure endorsement, an approved endorsing body must be convinced that you will dedicate most of your working time in the UK to developing your business ventures. The endorsing body also had to be satisfied that your business proposal met the following criteria:

• Innovation – The business plan had to be genuine and original, addressing new or existing market needs or creating a competitive advantage.
• Viability—You must have had or been actively developing the skills, knowledge, experience, and market awareness to run the business successfully.
• Scalability – The plan had to demonstrate job creation and expansion potential into the UK market.

Endorsing Bodies

The Home Office still publishes the legacy list of endorsing bodies authorised to issue Start-up visa endorsements before 14 April 2023. Only organisations on this list were permitted to provide endorsements. The endorsing body an applicant approached depended on the type of business they planned to establish in the UK.

Organisations are no longer able to offer endorsements for this visa route.

Endorsement Criteria

Each endorsing body took a different approach to processing applications. Some focused on market potential and growth, while higher education institutions emphasised academic innovation and the commercial potential of research.

Successful applicants typically demonstrated these factors through a business plan highlighting the business's innovation, viability, and scalability—key principles for securing endorsement. The business plan addressed factors such as:

• The business was needed in the UK.
• The applicant had, or was developing, the skills to run it successfully.
• The idea was new and different from existing businesses.
• Sufficient market research has been conducted.
• The business had clear and achievable goals.
• A long-term plan was in place.
• The business could attract customers and grow in the market.
• There was potential for expansion across the UK.

Endorsement letter

If a recognised endorsing body approved your Start-up visa application, you would have received an endorsement letter. This letter had to be submitted with your Start-up visa application and must have been issued no more than three months before the application date.

Financial Requirements

While investment funds were not required, applicants had to show they had enough personal funds to cover living expenses in the UK.

To meet this requirement, they needed to maintain a minimum balance of £1,270 in their bank account for at least 28 days before applying.

Additionally, applicants with dependents had to provide evidence of extra funds:

• £285 for a partner
• £315 for the first child
• £200 for each additional child

These financial requirements ensured that applicants could support themselves and their families without relying on public funds.

English Language Proficiency

Applicants had to demonstrate English proficiency at CEFR Level B2 (equivalent to IELTS 5.5) in reading, writing, speaking, and listening. This ensured they could effectively communicate and run their businesses in the UK.

However, those from countries where English is the primary language were typically exempt from this requirement.

Application Process for the Start-up Visa

The Start-up Visa application process differed depending on whether you were applying from outside the UK or switching from another visa. It was possible to switch to a Start-up Visa from within the UK unless your last granted permission was in one of the following categories:

• Visitor visa
• Short-term Student visa
• Parent of a Child's Student visa
• Seasonal Worker
• Domestic Worker in a Private Household
• Outside the Immigration Rules

How to Apply for a Start-up Visa

1. Prepare a Business Plan
   • The business had to be innovative, viable, and scalable.

2. Obtain Endorsement

• Applicants had to secure endorsement from an approved endorsing body in the UK.
• The review process typically took 4 to 8 weeks.

3. Complete the Visa Application

• Applications were submitted online via the Home Office website.
• The correct form depended on whether the applicant was applying from inside or outside the UK.

4. Verify Identity (Applicants were informed which method to use)

• Visa application centre: Provided fingerprints and a photo (£19.20 fee for a biometric residence permit).
• UK Immigration: ID Check app: Scanned an identity document.

5. Pay the Application Fees

• Applying from outside the UK: £378 per person.
• Switching from another UK visa: £508 per person.

6. Pay the Immigration Healthcare Surcharge

• Covered healthcare for the duration of the visa.

7. Wait for a Decision

• Applications were usually processed within 3 weeks if submitted from outside the UK.
• If switching from another UK visa, processing takes around 8 weeks.
• Delays may happen if further evidence or an interview is requested.

Conditions of Stay

Start-up Visa holders were allowed to work in another job whilst working on their start-up business, however, they had to meet certain conditions to maintain their status. This included staying in regular contact with their endorsing body, ensuring active business development, and making reasonable progress. The visa could not be extended or lead directly to settlement, but holders could switch to the Innovator category after two years. Failure to meet endorsement requirements could result in visa curtailment.

• You had to stay in contact with your endorsing body, with checkpoints at 6 and 12 months.
• The endorsing body needed to confirm that you were actively working on your business and making reasonable progress with your original or new business idea.
• If you fail to meet these requirements, your endorsement could be withdrawn and your visa curtailed.

Extending a Start-up Visa

The Start-up Visa is non-extendable, and holders are not eligible for settlement.

However, after two years, visa holders could apply for leave to remain under the Innovator category to continue developing their business. The Innovator category could lead to Indefinite Leave to Remain after 3 more years.

Summary

The Start-up Visa was an excellent route for foreign entrepreneurs to establish and grow innovative businesses in the UK. While this visa route has closed, the UK still offers pathways to attract the world's top entrepreneurial talent to launch and scale innovative businesses.

Alternative options include the Innovator Founder Visa. Self-sponsorship under the Skilled Worker Visa may be an option, requiring setting up a business and obtaining a sponsor licence.

If you want to discuss your options and explore which UK visa routes may be available, please contact our team or arrange an immigration consultation today.